Headwaters Economics released a report<http://headwaterseconomics.org/wphw/wp-content/uploads/state_lessons_for_subsidies.pdf> today that compares the experience of several Western states, in particular Montana and North Dakota who each sit atop portions of the oil-rich Bakken shale. The experience of fiscal and energy policy in these states suggest that production and drilling tax deductions and incentives are ineffective at changing the location of production.